The Company did not include certain stock options and restricted shares in the computation of
diluted earnings per share for the three-month periods ended March 31, 2016 and 2017 because those stock options and restricted shares were anti-dilutive for earnings per share for the respective periods.

15.

SEGMENT REPORTING

The operations of the Company are organized into three segments,
consisting of Search Services, Transaction Services, and iQiyi. Search Services are keyword-based marketing services targeted at and triggered by internet users search queries, which mainly include P4P services and other online marketing
services. Transaction Services include Baidu Nuomi, Baidu Deliveries, Baidu Mobile Game, Baidu Wallet, Baidu Map and others. iQiyi represents the online video business.

The Company derives the results of the segments directly from its internal management reporting system. The CODM measures the performance of
each segment based on metrics of revenue and earnings from operations and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. The Company does not allocate any share-based compensation expenses to
its segments as the CODM does not use this information to measure the performance of the operating segments. Because substantially all of the Groups long-lived assets and revenues are located in and derived from the PRC, geographical segments
are not presented.

The table below provides a summary of the Groups operating segment results for the three-month periods ended
March 31, 2016 and 2017.